AFK

Much Ado about the Strategic Petroleum Reserve

Even though you claim there is little correlation between the oil going to the reserves and the market price, the chart you reference tells a very different story. For the past few weeks we have seen Oil prices climb based on supply estimates. You indicate that the recent government report shows a decline in crude supplies which resulted in the oil prices topping $130 a barrel. The website shows that the amount of crude shipped to the Strategic reserves in MAY increased 2.5 times that of April and 8 times as much as in other months. To me that shows a direct correlation and intentional market manipulation. In this overinflated market, what happened 3-4 years ago is likely to be amplified considerably as shown in teh recent reserve transfers and their affect on supplies.